Lansing, Mich.-based FinCor Holdings, Inc., a risk managementcorporation serving health care providers and facilities, announcedyesterday it had acquired medical malpractice insurer, WashingtonCasualty Company for $9.8 million.

Washington Casualty is Washington State's fourth-largest medicalmalpractice insurer and is located in Issaquah, Wash.

Washington's Thurston County Superior Court gave final approvalfor the sale a hearing Friday.

FinCor said the transaction represents an important advance inits business toward a consultative service model, offeringhospitals and health care providers risk financing programs, riskmanagement solutions, and comprehensive insurance coverage.

The company said addition of WCC also fits its national growthstrategy aimed at entering new markets organically and throughacquisitions. Through WCC, FinCor said it will provide insuranceservices in 12 states.

Thomas Dickinson, FinCor president and chief executive officersaid "WCC's strength and values align perfectly with those ofFinCor. As a result, we are confident this transition will beseamless."

He added that, "Like WCC, FinCor has a reputation for valuingclient relationships and focusing on providing solutions that work.This is evidenced by FinCor's historically high client retentionrate, and the fact that we have clients who have been with us formore than 30 years."

FinCor's subsidiary, the MHA Insurance Company, provides medicalliability insurance to hospitals and physicians, insuring more than250 health care facilities and 5,000 physicians throughout theMidwest.

Through its other subsidiaries--FinCor Solutions, Capital RiskSolutions and the Risk Management and Patient SafetyInstitute--FinCor assists hospitals and healthcare providers indesigning clinical risk management programs.

Since the formation of MHA Insurance Company over 30 years ago,FinCor has been providing hospitals and other providers withmedical malpractice insurance, primarily on a direct basis.

FinCor through MHA currently insures hospitals and physicians inMichigan, Indiana, Ohio, Wisconsin, Kentucky, Iowa, Minnesota,North Dakota and South Dakota. The addition of WCC will extend thecompany footprint to Washington, Oregon and Idaho.

In addition to expanding geographically, FinCor said it isresponding to an increasing market demand for comprehensiveconsultative services by creating FinCor Solutions, its fullservice insurance agency.

FinCor Solutions not only offers commercial insurance coveragefrom a number of national carriers, but also assists clients in theevaluation and implementation of alternative risk financingsolutions.

FinCor's Risk Management and Patient Safety Institute helpshospitals and physicians design risk management programs to reduceadverse patient outcomes, leading to lower malpractice premiums andreduced claim frequency. The Institute serves clients in 50states.